Court of Cassation Dispute Ruling

A civil action was filed before Dubai Court of Cassation by a local Transport and Contracting Company ("Party A") against a Limited Liability Company ("Party B"). Party A requested the court to ratify an arbitral award issued under the auspices of the Dubai International Arbitration Centre ("DIAC") which directed Party B to pay Party A the amount of AED 26,597,651.27 plus 9% interest until full payment in addition to costs in the amount of AED 764,625.

Facts

On 5 March 2006 the parties executed a Muqawala agreement ("the Agreement") for a project in Dubai ("the Project"). Party A submitted that following an unsuccessful attempt to amicably settle a dispute with Party B which dispute had arisen out of the Agreement, it had referred the matter to arbitration. An award in favour of Party A was issued by the three-member Tribunal. Party A filed an action to enforce the award. Party B requested that the award be set aside on a number of grounds: